Suppose financial analysts believe that there are four equally likely states of the economy: depression, recession, normal and boom. The return on the Allos Inc. are expected to follow the economy...

Suppose financial analysts believe that there are four equally likely states of the economy: depression, recession, normal and boom. The return on the Allos Inc. are expected to follow the economy closely. The return predictions are as follows:

Required:

1. Calculate the expected returns


2. Calculate the variance


3. Calculate the standard deviation